If 1,000 units are produced at a total cost of $7,000, the average cost per unit is equal to_____

Answer 1

To find the average cost per unit, you can divide the total cost by the number of units produced.

Given:

• Total cost = $7,000
• Number of units = 1,000

Average cost per unit = Total cost / Number of units
Average cost per unit = $7,000 / 1,000
Average cost per unit = $7

So, the average cost per unit is $7.